Authored by the expert who managed and guided the team behind the Argentina Property Pack
Everything you need to know before buying real estate is included in our Argentina Property Pack
Are you curious about how Argentina's real estate market will evolve in the coming years? Wondering which trends will shape property investments and housing prices? Eager to discover the key factors driving these changes?
We will tell you everything. Here, no guesswork; we rely only on solid data.
Actually, we know this market inside and out. We keep tabs on it regularly, and all our discoveries are reflected in the most recent version of the Argentina Property Pack
This article gives you valuable insights, but remember, it’s not and will never be investment advice. We pull data from a range of sources to provide you with the most accurate picture possible, yet we can’t guarantee complete accuracy. Markets are difficult to predict. Make sure to do your own research and consult a professional before making any financial moves. Any risks or losses are your own responsibility.
1) Argentina's real estate market is expected to grow at a 3% per year until 2029
Argentina's real estate market is set to grow at a steady 3% per year until 2029.
Foreign investors from the U.S., Spain, and the Netherlands are flocking to Argentina, drawn by favorable exchange rates and competitive property prices. This influx is pushing up property values, making it a hot spot for international buyers.
The Argentine government is making it easier for locals to buy homes by introducing policies that increase access to credit. This has led to a noticeable boost in property sales, especially in bustling Buenos Aires, where urbanization is on the rise.
Argentina's growing middle class is another key player, driving demand for properties and enhancing rental income potential. This demographic shift is making the market more dynamic and attractive to investors.
Infrastructure improvements in major cities are also making properties more appealing. These projects are not just about aesthetics; they are boosting property values by improving accessibility and quality of life.
With positive GDP growth forecasts, Argentina offers a stable economic environment, which is conducive to real estate growth. This stability is reassuring for both local and international investors looking to make a move.
Sources: The Latinvestor, The Latinvestor, Statista
2) Mortgages will revolutionize Argentina's real estate market
Argentina's real estate market is buzzing with activity, driven by a surge in housing demand.
Urbanization and a growing middle class are pushing property values up, making homeownership more appealing. This trend is creating a fertile ground for mortgages to finally become common in the country.
Under President Javier Milei, interest rates have plummeted, making mortgages more accessible. For instance, Banco Ciudad has received 11,000 mortgage applications since April 2024, and Banco Nación is set to disburse $4 billion in mortgages over the next four years.
Economic reforms have stabilized the Argentine economy, leading to lower inflation rates. This stability is crucial for making mortgages viable, as it reduces the risks associated with long-term loans.
Inflation-adjusted mortgage schemes, like UVA loans, are helping people afford homes by mitigating the impact of inflation on payments. These schemes adjust the loan value according to inflation, making it easier for homeowners to manage their finances.
With these changes, the dream of owning a home in Argentina is becoming more attainable, as mortgages are now a realistic option for many. The real estate market is evolving, and it's an exciting time for potential buyers.
Sources: Statista, Trading Economics, The Latinvestor, The Latinvestor
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3) More and more Argentinians will pay their rent with Bitcoin
Argentina is quickly becoming a hotspot for Bitcoin adoption due to its economic struggles.
With an inflation rate soaring to 276% in 2023, many Argentinians are turning to Bitcoin as a stable alternative to their national currency. This shift is not just about avoiding inflation; it's about finding a reliable financial tool in uncertain times.
More businesses are now accepting Bitcoin, reflecting a nationwide trend towards digital currency. Government restrictions on foreign currency purchases have nudged people towards cryptocurrencies, making them a popular choice for those seeking financial freedom.
In the real estate market, Bitcoin is making waves. For instance, a notable rental agreement in Rosario allows tenants to pay $100 in Bitcoin each month. This shows how digital currencies are becoming part of everyday transactions, especially in real estate.
Argentinians are increasingly interested in decentralized financial systems, seeking financial security amid ongoing economic challenges. This interest is driving the adoption of Bitcoin and other cryptocurrencies as viable financial instruments.
As more landlords start accepting Bitcoin for rent, it's clear that digital currencies are gaining acceptance in Argentina's property market. This trend is likely to continue as people look for stable and innovative ways to manage their finances.
Sources: Cryptonomist, The Latinvestor, Bitdegree News
4) It will take 6 years to absorb Buenos Aires' property oversupply
In Buenos Aires, the property market is grappling with a significant oversupply.
With over 163,000 real estate units available, only 1.57% are being sold, which means it will take about six years to clear the market at the current pace. This is a stark contrast to the usual two-year period it used to take. The situation is partly due to declining property prices. Although nominal prices saw a slight uptick in 2024, inflation has caused a real-term drop, making properties less appealing to buyers.
Argentina's economic challenges are also playing a role. The country's real GDP shrank by 3.5% in 2024, which has hit people's purchasing power hard. This economic downturn, coupled with low consumer confidence, means fewer people are in the market for homes.
In this climate, buyer interest is weak, and the slow pace of sales is prolonging the time needed to absorb the oversupply. The economic situation is not just a number; it affects everyday decisions, like whether to invest in property or hold off.
For those considering buying property in Buenos Aires, it's crucial to understand these dynamics. The market is not just about numbers; it's about how these numbers affect real people and their choices.
Sources: Global Property Guide, World Bank, The Latinvestor
5) Modern and smaller homes will be in high demand in Argentina
Argentina's housing market is shifting towards modern and smaller homes, especially among young buyers.
These buyers are looking for low-maintenance living spaces that fit their urban lifestyles. With more people living in smaller households, there's a growing demand for homes that are easy to manage and maintain.
There's also a buzz around sustainable and energy-efficient homes. Argentina's push for sustainability is making these homes more appealing, as they help cut down on long-term costs.
Economic changes, like the repeal of the rent control law, have made housing more accessible. This has led to real rental costs dropping, making it easier for people to afford homes.
Rising land and construction costs are nudging buyers towards smaller home designs. These homes are not only more affordable but also align with global trends of compact urban living.
In Argentina, there's a focus on properties that blend modern design with sustainability, offering a fresh take on urban living.
Sources: The Latinvestor, The Latinvestor, CEIC Data
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6) The average price per m² in Buenos Aires should remain around $2,200 (or $205 per sqft)
The average price per m² in Buenos Aires is expected to stay around $2,200.
Despite Argentina's economic ups and downs, property prices in Buenos Aires have shown remarkable stability. Even in early 2023, when inflation was a concern, prices held steady. This resilience is a testament to the city's enduring appeal and the confidence investors have in its real estate market.
Recent reports show a 47.3% increase in property sales from July 2023 to December 2024, highlighting a vibrant market. This surge in sales suggests that both buyers and sellers are actively engaging, creating a balanced demand and supply scenario that supports stable pricing.
Looking ahead, economic forecasts are optimistic, predicting that inflation rates in Argentina will stabilize. This is good news for property values, as it reduces the pressure of rising costs. Additionally, the government sometimes rolls out incentives for real estate investments, which can further bolster the market.
Experts advise focusing on long-term value and sustainable returns, which aligns well with Buenos Aires' current market trends. The city offers competitive rental yields compared to other Latin American cities, making it an attractive option for investors seeking steady returns.
Sources: The Latinvestor, The Latinvestor, Global Property Guide
7) In 2025, Argentina's inflation will be somewhere between 18% and 47%
In 2025, Argentina's inflation is expected to be between 18% and 47%.
Argentina has a history of high and volatile inflation rates, with an average annual rate of 45% since January 2019. This trend continued with a Consumer Price Index (CPI) growth of 193.0% year-over-year in October 2024. Such fluctuations can make it tricky for potential property buyers to predict future costs.
President Javier Milei's administration has been working on economic policies to tackle inflation. They projected a decrease in annual inflation to 104.4% by the end of 2024 and further down to 18.3% by December 2025. However, the sharp devaluation of the peso from 365 to 800 pesos to the dollar in 2023 has kept inflation high, affecting purchasing power.
Argentina's central bank has faced challenges like "fiscal dominance," where a growing public debt or fiscal deficit leads to increased inflation. The central bank's decision to lower real interest rates to deeply negative territory has further fueled inflation by encouraging consumers to spend or convert their savings to dollars.
For those considering buying property, understanding these economic dynamics is crucial. The peso's devaluation and high inflation rates can impact property values and mortgage rates. It's essential to keep an eye on how these factors evolve, as they can significantly affect investment decisions.
Sources: Buenos Aires Times, Americas Quarterly, CEIC Data
8) Airbnb and short-term rentals will dominate investment strategies in Argentina
Argentina's tourism boom is reshaping its real estate market.
In 2023, over 1.3 million foreign tourists flocked to Argentina, marking an 18.8% increase from the previous year. This surge has fueled a growing demand for short-term rentals, with platforms like Airbnb becoming increasingly popular.
By November 2023, tourist revenue hit $4.5 billion, surpassing pre-pandemic figures. This upward trend continued into 2024, underscoring the lucrative potential of short-term rental investments in Argentina.
In bustling cities such as Buenos Aires, the Airbnb market is thriving. The capital alone boasts 29,335 Airbnb listings, thanks to investor-friendly regulations and high occupancy rates, making it a hotspot for property investors.
Investors are drawn to these urban areas not just for their lenient rules but also for the substantial revenue generated from short-term stays. This makes cities like Buenos Aires particularly appealing for those looking to capitalize on the tourism wave.
Sources: Go With Guide, Buenos Aires Times, Airbtics
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9) The number of property transactions will likely surpass 5,000 in the coming months
In Buenos Aires, property transactions have surged dramatically over the past couple of years.
Back in April 2024, there was a noticeable jump with a 32.2% increase in real estate purchase deeds compared to the previous year, totaling 3,636 registrations. Fast forward to December 2024, and the number of property sales had climbed to 4,946, marking a 47.3% increase from July 2023. This upward trend suggests that the number of property transactions will likely surpass 5,000 in the coming months.
Foreign buyers are a big part of this story. Folks from the U.S., Spain, and the Netherlands are snapping up properties, thanks to favorable exchange rates and competitive prices. This influx is reshaping the real estate scene in Argentina, making it a hot spot for international investors.
Government moves have also played a part. The repeal of the Rental Law and Executive Order 70/2023 have made the market more inviting, boosting investor confidence. These changes, along with efforts to stabilize the Argentine economy, like reduced interest rates, have made mortgages more accessible, fueling the property boom.
With these factors in play, the real estate market in Buenos Aires is buzzing. The combination of foreign interest and supportive policies is creating a dynamic environment for property transactions. If you're considering buying, now might be the time to dive in.
Sources: JJ Group, WSC Legal, The Latinvestor
10) Discounts will shrink further as demand intensifies, especially in high-demand segments
The Buenos Aires property market has seen a remarkable surge in sales in 2023 and 2024.
By the end of 2024, there were 4,946 property transactions, reflecting a 47.3% increase from July 2023 and a 16.9% rise from summer 2024. This boom means sellers have more power, leading to fewer discounts as demand grows.
With properties selling faster, the market inventory is shrinking, especially in popular areas. This scarcity fuels competition among buyers, making it unnecessary for sellers to offer discounts to attract interest.
Foreign investors from the U.S., Spain, and the Netherlands are also diving into the market, pushing property values higher. Their interest highlights the growing demand in high-demand segments, further reducing the need for price cuts.
Real estate agents are noticing more competitive bidding and less room for negotiation, clear signs of high demand and shrinking discounts. As interest continues to climb, especially in prime locations, this trend is expected to continue.
Sources: The Latinvestor
11) Online platforms will dominate property transactions in Argentina
Property transactions in Argentina are increasingly moving online.
With 87.2% of Argentinians online in 2023, the internet is a game-changer for property hunting. People can now browse listings from their living rooms, making the process more convenient and accessible. This shift is not just about convenience; it's about transforming how people buy and sell homes.
Digital payment systems are smoothing the way for online purchases. In 2023, e-commerce in Argentina hit $28 billion, showing that people are comfortable making big buys online. This comfort extends to real estate, where platforms like Mercado Libre are crucial, with 8 out of 10 Argentinians using them for property searches.
Traditional real estate agencies are feeling the heat to keep up. In Buenos Aires, there's been a noticeable uptick in online property deals. Agencies using online tools like Mercado Ads have seen a 52% boost in visibility, proving that online platforms are not just trendy but effective in reaching buyers.
These platforms are reshaping the real estate landscape, making it essential for agencies to adapt or risk being left behind. The convenience and reach of online platforms are undeniable, and they are becoming the go-to for property transactions.
As more people embrace online tools for buying and selling homes, the dominance of these platforms in Argentina's real estate market is becoming clear. The trend is set to continue, with online platforms leading the way in property transactions.
Sources: Digital 2023: Argentina, Argentina Real Estate Trends, Argentina E-commerce Market Data
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12) Rental prices are likely to slow down and may match inflation rates
In Argentina, rental prices are expected to slow down and may align with inflation rates.
One reason for this is the rising vacancy rates in rental properties. For instance, in 2023, the office real estate in Macrocentro had a 37 percent vacancy rate, which means more rental units are available. This increase in supply can lead to more competitive pricing, helping to stabilize rental prices.
Another factor is the repeal of rent control laws in December 2023 by President Javier Milei. This change led to an immediate surge in rental supply. Previously, rent control laws had caused landlords to pull properties from the market, resulting in a 45% drop in rental availability. With the repeal, more properties became available, contributing to price stabilization.
Economic reports also highlight a slowdown in demand for rental properties. The Institute of Economic Research of the Cordoba Stock Exchange noted that after the repeal of rent controls, rental prices have stabilized, and listings have increased significantly. This trend is supported by historical data showing that during economic downturns, rental prices often align with inflation rates.
Given Argentina's high inflation rates, it's likely that rental prices might stabilize or even decrease to match inflation. This is a significant shift for potential property buyers, as the market becomes more predictable and less volatile.
Sources: Statista, Inter-American Law Review, Reason
13) High costs and taxes will still turn away cautious foreign investors
Buying property in Argentina can be a pricey affair for foreign investors.
In bustling cities like Buenos Aires, property prices have soared, with new apartments in trendy areas like Puerto Madero hitting up to $6,500 per square meter in 2024. This makes it a costly venture for those eyeing real estate in the country.
On top of that, transaction costs and taxes can reach 10% of the property's value. These include realtor fees, escritura fees, and city tax, which all add up quickly. Such expenses are a big hurdle for investors who are careful about their financial commitments.
The process of buying property here isn't just expensive; it's also notoriously complex and bureaucratic. This complexity is part of what drives up the costs and taxes, making it a tough market for foreign investors to crack.
These challenges can easily deter investors who prefer simpler and more affordable opportunities elsewhere. The high costs and intricate processes are enough to make anyone think twice.
For those considering Argentina, it's crucial to weigh these factors carefully, as the financial and procedural hurdles are significant.
Sources: Statista, The Latinvestor
14) Younger, risk-tolerant investors, will dominate the market in Argentina
Younger, risk-tolerant investors are taking over the Argentine real estate market, and it's changing the game.
With property prices still relatively low, young people are jumping into real estate like never before. They're not afraid to take risks, and this boldness is turning the market into a lively playground full of opportunities. Digital platforms like Mercado Libre are making it super easy for them to dive in, with 80% of Argentinians now searching for properties online.
The rise of remote work is another big factor. Thanks to the Argentine digital nomad visa program, tech-savvy investors can work from anywhere and are eyeing international properties. This flexibility is a huge draw for younger investors who are comfortable with technology and eager to explore new markets.
These younger investors are also more comfortable with risk, which means they're not just buying properties—they're transforming them. They're investing in renovations and upgrades, breathing new life into areas that were once overlooked. This trend is pushing the market towards modern, smaller properties with a focus on sustainability.
Financial literacy is on the rise among Millennials and Gen Z, and it's having a big impact. They're not just buying properties; they're making smart investments that are driving up property values and boosting rental income potential. This savvy approach is reshaping the market landscape.
Sources: The Latinvestor, The Latinvestor, Lawyers Argentina
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15) Luxury gated communities in Argentina will house 100,000+ residents
The demand for luxury real estate in Argentina is booming.
In Buenos Aires, the number of gated communities has more than doubled from 350 in 2005 to 800 in 2014. This surge is fueled by major developers investing in new projects across Patagonia and Buenos Aires Province, drawing in residents who crave the perks of gated living.
Argentina's real estate scene is being reshaped by rapid urbanization and foreign buyers from the U.S., Spain, and the Netherlands. These international investors are driving up property values, making gated communities an attractive option for locals seeking a secure and luxurious lifestyle.
Security is a big draw for these communities, with strict measures like guards and surveillance offering peace of mind to affluent residents. The blend of historical architecture with modern amenities is a hit among Argentina's wealthy, who are keen on properties that offer both charm and convenience.
Gated communities are not just about security; they offer a lifestyle upgrade with luxury amenities and private living spaces. This is particularly appealing in a country where economic instability makes a secure and comfortable living environment highly desirable.
As the market continues to grow, the focus on luxury and security in these communities is expected to attract even more residents, further boosting their popularity.
Sources: Statista, The Latinvestor, Parapraxis Magazine
16) The rent gap between neighborhoods will become larger and larger in Buenos Aires
The rent gap in Buenos Aires is set to grow wider due to several factors.
In popular neighborhoods like Puerto Madero, Palermo, and Recoleta, property values are soaring, pushing rental prices up. For example, Puerto Madero's average monthly rent hit 1,047,664 pesos in 2024, thanks to luxury housing projects and a limited number of homes available.
Foreign investors are also making a splash, especially in Palermo and Recoleta, where international buyers are driving up demand and prices. The government's decision to repeal rent control laws in December 2023 has made more rental properties available in these sought-after areas, further widening the rent gap.
Neighborhoods like San Telmo and Puerto Madero are seeing infrastructure upgrades, making them more appealing and pushing rents even higher. Meanwhile, gentrification in traditionally lower-income areas like Parque Patricios and La Boca is changing the neighborhood dynamics and causing displacement, which only adds to the rent gap issue.
In Buenos Aires, the disparity in public services and amenities between neighborhoods is stark. Premium areas are becoming more attractive, and rents are climbing as a result. This trend is leaving a noticeable gap between the more affluent and less developed parts of the city.
As these changes unfold, the rent gap between neighborhoods in Buenos Aires is expected to continue expanding, making it a crucial factor for potential property buyers to consider.
Sources: Buenos Aires Times, The Latinvestor, Urban Displacement Project, The Latinvestor
17) Investors will target high-yield areas like Lugano to maximize returns
Investors are eyeing Lugano for its impressive rental yields of 7.3%, far above Argentina's average of 4.77%.
In recent years, Lugano has seen significant infrastructure upgrades, making it even more appealing. The local government's urban renewal projects are set to further boost property values and rental yields, creating a win-win for investors.
Media outlets are buzzing about Lugano as a new investment hotspot. This positive attention, along with successful real estate developments, is attracting both local and foreign investors eager to capitalize on the area's potential.
Foreign investment is pouring in, thanks to Lugano's attractive property prices and high rental yields. This influx is expected to keep driving property values and rental income higher, making it a lucrative opportunity.
Investors are particularly drawn to Lugano's strategic location and growth potential. The combination of high yields and ongoing development makes it a prime choice for those looking to maximize returns.
With all these factors in play, it's no wonder that Lugano is becoming a top target for savvy investors. The area's potential for high returns is hard to ignore.
Sources: The Latinvestor, Numbeo, The Latinvestor
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18) Demand for higher-value properties will rise as buyers perceive them as safer, long-term investments
In Argentina, the real estate market is shifting, especially in 2023 and 2024.
With the Argentine Peso losing value, foreign investors are eyeing high-value properties as safer bets. These properties are seen as stable investments that can hold their worth even when the economy wobbles. The recent changes in regulations, like the repeal of the Rural Land Law and the removal of the 1.5% transfer tax, have made it easier for foreigners to buy property. This has opened doors for international buyers, especially in prime locations.
High-value properties in Argentina are catching the eye of expatriates and international buyers. The media often highlights these properties as stable investments, which only adds to their allure. Investors are also drawn to the flexibility of setting rents in USD or Bitcoin, allowing them to use more stable currencies. This makes these properties even more attractive.
In Buenos Aires, for instance, luxury apartments in neighborhoods like Recoleta and Palermo are in high demand. These areas offer not just beautiful homes but also a vibrant lifestyle, with cafes, parks, and cultural spots. The combination of lifestyle and investment potential is hard to resist for many buyers.
Moreover, the Argentine government is keen on attracting foreign investment, which is why they’ve made these regulatory changes. They understand that foreign capital can boost the economy, and high-value properties are a big part of that strategy. This is why the demand for these properties is expected to keep rising.
As more international buyers enter the market, the competition for prime real estate is heating up. This trend is likely to continue, as buyers look for safe, long-term investments in a market that offers both potential and prestige.
Sources: The Latinvestor, CBS News, WSC Legal
19) 3-bedroom apartments will become the dominant standard in the real estate market
In Argentina, 3-bedroom apartments are becoming increasingly popular in the real estate market.
As urban areas expand, families are looking for more spacious living arrangements to suit their needs. This shift is largely due to the growing middle class, who now have the means to afford larger homes. With cities like Buenos Aires bustling with activity, the demand for these family-sized units is on the rise.
Developers are keenly aware of this trend and are ramping up the construction of 3-bedroom apartments. This move is not just about meeting demand; it's also about capitalizing on the higher resale value and rental yield these properties offer. For investors, this makes 3-bedroom apartments a smart choice.
Market reports consistently show that these units are taking up a larger share of property sales. The appeal is clear: families want room to grow, and these apartments provide just that. As a result, 3-bedroom apartments are becoming the standard in urban housing.
In bustling neighborhoods, these apartments offer a balance of space and convenience, making them highly sought after. The trend is not just a passing phase; it's a reflection of changing lifestyles and economic capabilities. With more families prioritizing comfort and space, 3-bedroom units are here to stay.
For those considering a property investment in Argentina, understanding this shift is crucial. The market is evolving, and 3-bedroom apartments are at the forefront of this change. Investing in these units could be a wise decision for both immediate returns and long-term gains.
Sources: TheLatinvestor: Argentina's Real Estate Forecasts, TheLatinvestor: Argentina Price Forecasts, Statista: Apartment Price Buenos Aires, Argentina 2023
20) Rising mortgage availability may raise prices per sqm by 30%, as observed before
In 2023 and 2024, Argentina saw a significant rise in mortgage approvals, signaling increased mortgage availability.
Historically, when mortgages become more accessible in Argentina, property prices tend to climb. This is because more people can afford to buy homes, which boosts demand and pushes prices up. For example, when mortgage rates were lower in the past, there was a noticeable surge in property demand.
Real estate agencies across Argentina have noticed a growing interest in properties due to easier financing options. This trend is evident as more buyers enter the market, driving up property prices. The increased competition among buyers is a direct result of more accessible mortgage options.
Consumer surveys reveal that many potential buyers are more inclined to purchase properties when they have access to mortgage options. This heightened interest further fuels competition and contributes to rising property prices.
In the past, when mortgage availability increased, property prices per square meter rose by as much as 30%. This pattern suggests that the current trend of rising mortgage availability could lead to similar price hikes.
As more people gain access to mortgages, the demand for homes continues to grow, which in turn drives up property prices. This cycle of increased demand and rising prices is a familiar scenario in Argentina's real estate market.
Sources: CEIC, Fannie Mae
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21) PH properties will maintain high demand, and their scarcity will drive price increases
PH properties in Buenos Aires are in high demand, and it's easy to see why.
In trendy spots like Palermo Soho, land for new PH developments is scarce, pushing prices to record highs. This limited availability means that if you find a PH property, you're looking at a valuable piece of real estate.
With over 14 million people living in Buenos Aires and its suburbs, the city's growing population is drawn by job opportunities and vibrant culture. This influx is making urban living spaces, especially PH properties, more desirable than ever.
PH properties have a history of increasing in value, and this trend is expected to continue. Government regulations are restricting new construction in certain areas, which will likely keep supply low and prices climbing.
These properties are hot on the market, often selling within just a few months. The quick sales reflect their high demand and the competitive nature of the market.
Sources: The Latinvestor, World Bank Blogs, Earth Site